[Platinum Watchlist] (2.23.23) 2 stocks on our radar!

Good morning.  

GD had a full candle close above the 200-day SMA on Tuesday which gave us some confirmation that we were finding price support at this level. Price action also closed above the 20-day EMA which also provides support and a potential entry price for this stock. 

We still show a sideways trading pattern and an RSI below 50. Traders using the guidelines with higher risk tolerance would now be in this position with stops below the 9 as protection against the loss. Resistance will be at the 50.  

CPB closed down yesterday 0.69% with all oscillators in the green. Price action is now right between the 20-day EMA (support) and the 50-day SMA (resistance). As a trader, a buy limit could have been placed below the previous days close (53.35) as a potential entry level. 

There is positive trending for both the 9 and 20 day moving averages which provides probable confirmation for this position. The 50-day SMA could be utilized as a potential exit point on the top side for risk adverse traders.  

My Swing Tading Guidelines gave us enough positive signals to place both of these positions in the Paper Trade portfolio. Support and resistance levels are price levels at which the stock price is likely to bounce or reverse. Identifying these levels is important for determining entry and exit points. With down trending market indices and knowing your risk tolerance, traders need to set stops accordingly in case price action moves against you.   

Have a great day.  This information is for educational purposes only and is not a recommendation to buy or sell a security.